Brokerage Exam - Missed Questions

Phillip, a licensed agent, had a written representation agreement with a buyer but was paid 4% of the selling price at the closing by the seller. Under these circumstances, the broker was acting as an agent for the seller an agent for the buyer a dual agent None of the above. The broker violated real estate law and risks license suspension or revocation.

an agent for the buyer The source of compensation does not determine agency relationships. The broker does not necessarily represent the person who pays the commission.

The Real Estate Settlement Procedures Act (RESPA) requires that a good faith estimate (GFE) of a borrower's closing costs be provided to the borrower at the time of loan application or within three business days. within 48 hours of closing. within three days of closing at the time of closing.

at the time of loan application or within three business days. At the time of the loan application or within three business days, the lender must provide the borrower with a GFE of the closing costs the borrower is to incur.

A buyer asked Clifton why she would benefit from signing an agency agreement with him. Clifton answered: ______ "It protects my commission in case we work with a For Sale by Owner." "It's the law." "My brokerage requires it." "Without it, I work for the seller."

"Without it, I work for the seller." Without the buyer agency agreement, Clifton works for the seller.

Renee, an Illinois licensee, applies to the Illinois Real Estate Recovery Fund to seek damages for a judgment the courts awarded her for another licensee's slander. What's the maximum amount she can recover? $0 $25,000 $50,000 $75,000

$0 The Illinois Real Estate Recovery Fund may help consumers recover damages as a result of a judgment based on a real estate transaction; Renee's claim and judgment aren't covered.

Which agent role in Illinois is assumed by a licensee who assists a prospective customer in a transaction on behalf of a seller or buyer client? Buyer's agent Dual agent Non-agent Seller's agent

Non-agent A licensee who assists, but doesn't represent, a prospective customer is a non-agent. The assistance is made on behalf of an existing seller or buyer client.

Marquis Realty moved to a larger office in a busier part of town. What's one of the first things the firm is required by Illinois licensing laws to do? Change the bank that holds their trust funds to one closer to the new office. Change the office location address for all the firm's sponsored licensees within 24 hours. Notify all the firm's past and current clients of the new location within five days. Notify the Division of Real Estate immediately.

Notify the Division of Real Estate immediately. Marquis must immediately notify the Division of Real Estate about the change in location.

The contract of sale states that the earnest money deposit is to be placed in an interest-bearing account with any interest earned to be given to the buyer. This is: Illegal Not okay, and the broker should resign the listing Okay, because the buyer and seller have agreed to this Commingling

Okay, because the buyer and seller have agreed to this The law requires a broker maintain a separate non-interest-bearing trust bank account to receive client funds tendered to the broker in trust but does not require interest earned be distributed in a particular way. The broker is an agent and should carry out the client's instructions completely, so long as they are legal

Tiffany Wendling is a broker in Illinois. Her sponsoring broker is Carson Brooks, whose brokerage business name is Brooks Realty, Inc., and is located in Peoria, Illinois. Which of these describes the items that must appear on the home page of Tiffany's website, according to the Real Estate License Act of 2000? Tiffany Wendling, Broker at Brooks Realty, Inc. Peoria, IL Tiffany Wendling, Broker (Carson Brooks, Managing Broker) Tiffany Wendling, Broker, Peoria, IL Tiffany Wendling, Illinois Broker at Brooks Realty, Inc.

Tiffany Wendling, Broker at Brooks Realty, Inc. Peoria, IL Each page of Tiffany's website needs to display her name, her sponsoring broker's business name, and the city and state where the main brokerage office is located.

How is transfer tax collected in Illinois? Through a lender lis pendens Through a lien on the home Through an escrow holdback Via deeds and other instruments relating to or affecting the title

Via deeds and other instruments relating to or affecting the title Transfer tax is collected via tax stamps purchased and affixed to deeds and other instruments relating to or affecting the title and recorded as evidence of payment.

A developer retains agent Suzy to sell townhouses. Joey, a licensed agent, submits an offer to buy unit 1603 for $120,000, and a sales contract is executed. Through a typographical error, however, the contract identified unit 1602 which was listed for $150,000. This contract would fall under which category? Void Voidable Enforceable Invalid

Voidable All parties to a transaction, including agents, should carefully read all binding agreements. A mistake that is mutual, material, unintentional and free from negligence may cause the contract to be voidable.

What's the state transfer tax rate in Illinois? $0.25 for each $500 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property $0.30 for each $500 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property $0.35 for each $500 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property $0.50 for each $500 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property

$0.50 for each $500 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property The transfer tax imposed by the state of Illinois is $0.50 for each $500 of the transfer price, or fraction thereof, of the real property or the beneficial interest in real property.

The Simpsons are buying the Martins' house for $415,000, and closing is set for March 15. The Martins have a loan balance of $230,000 at a rate of 4.7% and have prepaid property taxes ($2,506) and insurance ($1,400), and they also have mortgage interest to consider. Using a 365-day proration method, calculate the prorated amount the Simpsons will owe the Martins at closing. Assume February has 28 days this year. The sellers own the day of closing. $1,997.62 $3,113.46 $604.95 $792.54

$1,997.62 Calculate daily rates for taxes to be prorated: $2,506 ÷ 365 = $6.87. The Martins pay the first 74 days (January 1 through March 15): 74 x $6.87 = $508.38. $2,506 - $508.38 = $1,997.62 owed by the Simpsons. Homeowner's insurance isn't prorated between the buyer and seller. A homeowner's insurance policy is an agreement between the insurance company and the policyholder, so any refund due to the seller/homeowner will be handled between those two parties.

In Illinois, what's the permitted homestead exemption for homestead land owned by one person? $10,000 $15,000 $20,000 $30,000

$15,000 When homestead land is owned by one person (estate in severalty), as much as $15,000 worth of the property value is exempt from.

Garrett sold his primary residence for $595,000, which was a capital gain of $315,000. How much may Garrett exclude on his income tax as a single individual? $315,000 $100,000 $476,000 $250,000

$250,000 Garrett may exclude $250,000 of the capital gain on the sale of his primary residence on his income tax. The most a single individual may exclude on the capital gain of a sale of a primary residence is $250,000.

For this question, disregard selling costs, taxes, etc. and choose the closest answer. A parcel of land is sold for $163,000. If it appreciates at 14% compounded per year and the seller keeps it for seven years, how much will the seller pay for it? $72,000 $70,500 $65,000 $55,000

$65,000 To solve use the formula: V = P(1+r/n)^nt ·V = future value of the investment ($163,000) · P =principal investment amount · r = annual interest rate(14%) · n = number of times that interest is compounded per year (1) · t = number of years the money is invested for (7) o $163,000 = P(1+0.14/1)^1*7 o$163,000 = P(1.14)^7 o $163,000 = P(2.5022) o$163,000/2.5022 = P o P = 65,142 o P = 65,000

Andrew leased 4 apartments in the Langston Apartments for a total monthly rent of $4,500. If this figure represents an 8% annual return on Andrew's investment, what was the original cost of the property? $675,000 $450,000 $54,000 $56,250

$675,000 To calculate the cost of the property, determine the annual rent: $4,500 × 12 = $54,000 annual rent. Finally, divide the annual rent by the annual return: $54,000 /0.08 = $675,000.

Phyllis bought a beach townhouse for $475,000 and put down $50,000 in earnest money. At closing, she paid $150,000, the balance of her intended down payment. The mortgage tax in the area is $.35 per $100 (or portion thereof). Calculate what Phyllis will pay for the mortgage tax. $1,137.50 $1,662.50 $700 $962.50

$962.50 A mortgage recording tax is based on the loan amount. Phyllis will pay a mortgage tax amount of $962.50 on her loan amount ($275,000 x .0035).

Alan and Kate want to build a 5,000-square-foot ranch-style home on two acres of land they just bought. Once the house is built, how many acres of undeveloped land will remain? 0.88 acres 0.89 acres 1.86 acres 1.89 acres

1.89 acres One acre is equal to 43,560 square feet, so their parcel is 87,120 square feet (43,560 x 2). Subtract the house's 5,000 square feet from that, and you get 82,120 square feet. Divide that by 43,560, and you end up with approximately 1.89 acres.

A buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a car payment of $400 per month. If the buyer earns a monthly gross income of $5,000, what's the housing ratio? 20% 23% 28% 31%

23% The housing ratio is 23%: ($1,000 + $150) / $5,000 = .23 x 100 = 23%.

A landlord who rents five or more units in one building should provide a written cost of repairs within _______ days of the tenant vacating. 15 25 30 45

30 If the building or complex comprises five or more units, the landlord should provide the tenant with a written statement noting the property damage that must be repaired, and an estimate of the repair costs, within 30 days of a tenant vacating.

The Gatlins' lender tells them they can afford a monthly payment of $1,830 on their new home loan. What interest rate are the Gatlins getting if this is an interest-only loan with a principal balance of $349,000? 0.524% 5.24% 6.29% 6.39%

6.29% Annual payment ÷ loan balance = interest rate. $1,830 x 12 to get the annual payment of $21,960. Then divide the annual payment by the loan amount: $21, 960 ÷ $349,000 = .0629, or 6.29%.

What percentage of a building's replacement value must be covered by fire insurance according to typical coinsurance clauses? 50 percent 60 percent 70 percent 80 percent

80 percent Insurance policies usually carry coinsurance clauses that require coverage up to 80 percent of the building's replacement value.

Which of the following statements is true about zoning classifications? A home business would be considered an accessory use. A residential property may only have one use. Condos are always commercial property. Multi-family housing is zoned commercial.

A home business would be considered an accessory use. An accessory use is one that's subordinate but related to the main use of the property.

Which of the following is a violation of the Illinois Real Estate License Act? A licensee acts as a dual agent in a residential sales transaction in which both the buyer and seller have consented in writing to dual agency. A licensee attempts to convince a party to break a sales contract in order to create a new one. A licensee discusses the advantages of entering into an exclusive brokerage agreement with a consumer. A licensee terminates a brokerage agreement with a client who refused to consent to dual agency.

A licensee attempts to convince a party to break a sales contract in order to create a new one. Any attempt to persuade or convince any party to a brokerage agreement, lease, or sales contract to break that agreement, lease, or contract in order to create a new one is a clear violation of the Real Estate License Act.

According to Article 7 of the NAR Code of Ethics, which of these statements is most accurate when accepting compensation from parties to a transaction? A licensee shall not accept compensation directly from more than one party to a transaction. A licensee shall not accept compensation from anyone regardless of consent. A licensee shall not accept compensation from more than one party to a transaction without consent from the client. A licensee shall not accept compensation from more than one party to a transaction without the full knowledge and consent of all parties.

A licensee shall not accept compensation from more than one party to a transaction without the full knowledge and consent of all parties. Licensees may only accept compensation from more than one party with the full knowledge and consent of all involved parties. As a reminder, compensation goes through the broker and is not given directly to the licensee by the parties involved.

When considering loan risk, which two items will lenders consider in equal measure? Borrower and property Credit and employment Debt and income Loan and value

Borrower and property The property's value (as underlying collateral) and the borrower's ability to repay the loan will be equal considerations for the lender.

Developer Constance Roberts subdivided a parcel of land into 25 five-acre lots and properly recorded the subdivision. Before she could build on the lots, she became ill and sold the entire subdivision to another developer, Accolade Homes, which plans to further subdivide into lots half the original size. Which of these statements is true? Accolade Homes can further divide the property without a new land survey and or subdivision plat if no new streets or access points will be required. Accolade Homes must develop the subdivision according to the previous subdivision plat. Because building hadn't begun at the time of the sale, Accolade Homes must complete a new subdivision process. The Illinois Plat Map Act requires Accolade Homes to add new streets and access points if they further subdivide the property.

Accolade Homes can further divide the property without a new land survey and or subdivision plat if no new streets or access points will be required. As long as Accolade's plans don't include addition of new streets or access points, it can further subdivide the parcel without a new survey or certification by the Illinois Registered Land Surveyors Association.

The Americans with Disabilities Act of 1990 would affect which of the following? Multi-family home with three units A single-family home An existing business with 30 employees A third-floor apartment in a newly constructed apartment complex

An existing business with 30 employees The ADA of 1990 seeks to accommodate those with disabilities by broadening their access to public facilities. Any existing business with 15 or more employees must update their facility to conform with ADA rules and regulations. Almost all new construction, except single-family homes, must be handicapped accessible. Newly constructed ground-floor apartments are subject to ADA regulations, while those on higher levels are not. As of 1988, multi-family buildings with four or more units must comply with ADA standards.

What's the term used in real estate to describe when personal property is attached to real property, thereby making it a fixture? Accoutrement Annexation Emblement Severance

Annexation Annexation occurs when personal property is attached to real property, which makes it a fixture.

The Illinois Human Rights Act prohibits discriminatory practices in housing, employment, credit transactions, public accommodations, and more. What's another provision under this law? Age is a protected class for public accommodations only. Anyone offering different terms or conditions in the sale, lease, or rental of housing, land, or commercial space is exempt. Anyone refusing to sell, rent, lease, or otherwise deny service to any person or group of persons is exempt. Anyone who testifies for the person filing the complaint or assists in his discrimination complaint is protected from retaliation.

Anyone who testifies for the person filing the complaint or assists in his discrimination complaint is protected from retaliation. You bet! Not only are complainants protected from retaliation, so is anyone who assists or testifies for them.

Moira performed the following tasks last week: Named Tom Smith as designated agent in a transaction. Appointed Wendy Jones as a mentor for Trixie, a new licensee. Created employment agreements with the new licensees. Registered her sponsorship of three new licensees with the state. Which of these tasks was she NOT specifically required to perform? Appoint a mentor for Trixie Create employment agreements Issue sponsor cards Name designated agent

Appoint a mentor for Trixie While making a coach or mentor available to licensees is an excellent tactic, it's not specifically required of the sponsoring broker.

In Illinois, ______ are directly responsible for the supervision and adequate training of affiliate (sponsored) licensees. Designated managing brokers Licensed assistants Sponsoring brokers Supervising brokers

Designated managing brokers Designated managing brokers supervise and train their affiliate licensees. Sponsoring brokers are required by law to name a designated managing broker at each office to supervise the activities of licensees and unlicensed assistants.

At what point or points must an Illinois licensee obtain written consent from the clients involved in a dual agency situation? After an offer has been accepted At the execution of the brokerage agreement, and no later than at the execution of the purchase contract Before agency activities begin Before agency activities begin, and then at the execution of the offer

At the execution of the brokerage agreement, and no later than at the execution of the purchase contract An initial dual agency disclosure must be made at the time the brokerage agreement is entered into, and a disclosure confirming consent must be made either at execution of the offer or when signing the purchase contract, but not after the latter.

Which is NOT considered chattel? Trade fixture Barn Curtains Tractor

Barn Chattels include possessions such as refrigerators, drapes, clothing and money.

Which of these is an example of illegal market allocation? Based on licensee expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on suburban, rather than rural, homes. Christopher's brokerage firm decides to focus on listings in the $350,000 to $475,000 price range. Lamborn Realty Group and Your Choice Real Estate each discuss with their licensees where the most lucrative deals can be found. Three agents in Jonathan's firm agree to focus on the specific neighborhoods in which they live so they're more knowledgeable about listings in those areas.

Based on licensee expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on suburban, rather than rural, homes.

In Illinois, when must licensees obtain consent for dual agency representation? As the situation arises Before entering into a dual agency transaction. In the first face-to-face meeting with a potential client Prior to entering into a contract for a specific transaction

Before entering into a dual agency transaction. Licensees must discuss dual agency when executing a brokerage agreement; clients must sign the consent before entering into a dual agency situation. That consent must be confirmed no later than at the time the purchase or lease agreement is signed.

Rick, a builder, is using two properties as collateral for a loan. This is an example of a(n) ______ loan. Blanket Over-secured Package Wrap-around

Blanket

In what circumstance do you have the authority to host an open house for another company's listing for compensation? Both brokerage firms consulted their attorneys and insurers and entered into a written agreement The listing agent authorized you to cooperate with her brokerage firm The listing brokerage has authorization from the seller. Under no circumstances do you have the authority to host an open house for another company's listing for compensation

Both brokerage firms consulted their attorneys and insurers and entered into a written agreement In Illinois, the only permissible way to host an open house for another company's listing for compensation is if both brokerage owners consulted their attorneys and insurers and entered into a written agreement.

Who is responsible for reviewing the Closing Disclosure before closing? Both the buyer and the seller Only the buyer Only the parties' respective agents Only the seller

Both the buyer and the seller The buyer and seller are both responsible for reviewing the Closing Disclosure before closing. Their respective agents will review the Closing Disclosure too, to assist and answer any questions.

Illinois licensee Alma is one busy woman: In addition to her regular broker duties, she also mentors three other licensees. The company owner has approached her about managing two additional office locations, but she'd need to take more coursework to be qualified to do that. What kind of broker is she? Associate broker Broker Managing broker Sponsoring broker

Broker Alma is a broker. She'd need to take additional coursework and become a designated managing broker to manage a brokerage office.

Which of the following is a true statement regarding licensees providing closing cost estimates to buyers? Brokerage offices may require or encourage licensees to provide assistance in estimating closing costs as a customer service. Licensees don't need to provide this information because buyers will receive the same information from lenders. Licensees provide this information to sellers to assist with contract negotiations. NAR and regulatory agencies require licensees to provide closing cost estimates.

Brokerage offices may require or encourage licensees to provide assistance in estimating closing costs as a customer service. NAR and regulatory agencies don't require licensees to provide closing cost estimates, but brokerage offices may require or strongly encourage it.

Christian's license has been expired for four years and two months. He has decided he wants to renew his license. Which of these statements is true? Christian must complete all pre-licensing coursework and retake the licensing exam. Christian must complete the CE requirements for the most recent pre-renewal period. Christian must complete the continuing education coursework that would have been required if he'd remained licensed. Christian must complete the state portion of the licensing exam.

Christian must complete the CE requirements for the most recent pre-renewal period. To reinstate a license that's been expired more than two years but less than five years, the licensee must apply to the IDFPR/DRE, complete the CE requirements for the most recent renewal period, and provide proof of fitness to have the license restored.

Christian established a limited liability company (LLC) through which he conducts his real estate business. Which of these statements about compensation is correct? Because Christian has established a business entity, he may receive compensation through that entity directly from clients or other brokers. Christian's broker may compensate Christian through the established LLC. Christian's broker must compensate Christian directly. He may not compensate Christian through the LLC. It's illegal for Christian to form a business entity from which to run his real estate practice, so he can't be compensated through the LLC.

Christian's broker may compensate Christian through the established LLC. Illinois law specifically permits licensees to form a business entity and be compensated through that entity, as long as the entity is solely owned by the licensee or the licensee and the licensee's spouse, if the spouse is either not licensed or is licensed through the same brokerage firm.

Citywide Development is planning a new subdivision called Leydan Rock. Each lot will be two acres, and the entire subdivision will include 32 residential lots. Which of these statements about this subdivision and the Illinois Plat Map Act is FALSE? Citywide must get the subdivision plat commissioned and certified by the clerk and recorder of the county where the subdivision is located. Citywide must have the land surveyed. The Illinois Registered Land Surveyors Association must certify the plat map. The plat map is required because the lots are under five acres each.

Citywide must get the subdivision plat commissioned and certified by the clerk and recorder of the county where the subdivision is located. The Illinois Registered Land Surveyors Association is responsible for the commission and certification of subdivision plats.

Which one of the following is true about ownership or title to a property? Constructive notice to the public of real property ownership occurs when the deed is recorded. The last party to record has priority. The seller is responsible for paying for owner's and lender's title insurance. Title isn't finalized until the deed has been recorded.

Constructive notice to the public of real property ownership occurs when the deed is recorded. Recording and possession give the public constructive notice that ownership has changed hands. It also protects the buyer from others' claims on the property.

When may an automatic renewal clause be used in a buyer agency agreement? If the property the buyer is seeking is valued at $250,000 or more Never When the buyer agrees in writing When the property is valued at less than $250,000

Never Automatic renewal clauses are illegal because they tie the buyer to a specific agent. What if the buyer no longer wishes to work with that agent?

In a real estate transaction, which two parties are owed the same duties? Clients and cooperating agents Clients and customers Clients and other parties Customers and other parties

Customers and other parties Other parties in the transaction are owed the same duties as customers. Only clients receive the full offering of your duties.

Jesse's tenant, Carson, lawfully terminated his lease and moved out on October 12. On which of these dates is Jesse outside the deadline for refunding Carson's security deposit? December 12 November 1 November 11 October 27

December 12 A landlord must refund a tenant's security deposit within 45 days.

Illinois licensee Devian manages four of Star Realty's office locations. She's also in charge of hiring employees and maintaining all transaction records. What kind of broker is she? Associate broker Broker Designated managing broker Sponsoring broker

Designated managing broker Devian is the designated managing broker for Star Realty, the sponsoring broker. She performs management duties in four of the firm's locations.

Which of these is a quality that differentiates Illinois escrow accounts from other accounts? Distribution of funds from escrow accounts is restricted by law. Escrow accounts can't be interest-bearing accounts. Escrow accounts must be interest bearing. Funds in escrow accounts can be used for any purpose.

Distribution of funds from escrow accounts is restricted by law. Funds deposited in an escrow account belong to others (not the brokerage firm) and are designated for special purposes. State laws regulate distribution of funds from escrow accounts.

Which statement is TRUE about down payments under the Federal Housing Administration (FHA)? Down payments are 10% Down payments are not required Down payments can be as low as 3% Down payments are normally 20%

Down payments can be as low as 3% FHA, a branch of the U.S. Department of Housing and Urban Development (HUD), insures qualified mortgages for single-family, multifamily, nursing homes and mobile homes. FHA may allow down payments as low as 3%.

Illinois licensee Jane has one buyer client who wants to put an offer on one of her seller client's properties. Jane has made sure to obtain the informed consent to a potential dual agency relationship from both clients at the start of their respective relationships, but at what point will Jane need to make the second of the required dual agency disclosures? At the same time as the first disclosure, with the brokerage agreement At the time the offer is executed At the time the purchase contract is executed Either when the offer is executed, or at the time the clients are executing the contract to purchase

Either when the offer is executed, or at the time the clients are executing the contract to purchase The second dual agency disclosure, obtaining confirmation of the initial consent to dual agency, should be made either when it's time to sign an offer or at the time the clients are executing the contract to purchase or lease.

Which of the following statements about escrow funds and escrow accounts in Illinois is true? Escrow accounts are interest-bearing. Escrow accounts must be maintained at a federally insured depository. Escrow funds cannot be in the form of cash. Sponsoring brokers may only maintain one escrow account at a time.

Escrow accounts must be maintained at a federally insured depository. Sponsoring brokers may maintain more than one escrow account. Each account must be maintained at a federally insured depository and be non-interest bearing. Sponsoring brokers must provide a receipt for escrow funds that are in the form of cash.

Which of the one of these statements about transaction records retention in Illinois is true? All escrow and transaction records may be retained offsite or at the sponsoring broker's office. All escrow and transaction records must be retained at the sponsoring broker's office for five years. Escrow and transaction records related to active or pending transactions must be maintained at the sponsoring broker's office. Escrow records three years old and newer must be maintained at the sponsoring broker's office.

Escrow and transaction records related to active or pending transactions must be maintained at the sponsoring broker's office. In Illinois, escrow and transaction records related to active or pending transactions must be available for easy review at the sponsoring broker's office. Escrow records two years old and newer must be at the office location.

Which of the following agreements gives you the sole right to represent a buyer? Exclusive listing agreement Exclusive right-to-list agreement Exclusive right-to-represent agreement Exclusive right-to-sell agreement

Exclusive right-to-represent agreement An exclusive right-to-represent agreement is the most popular form of a buyer representation agreement because it gives the licensee the sole right to represent the buyer.

Which one of these statements about transaction records retention in Illinois is true? All escrow and transaction records may be retained offsite or at the sponsoring broker's office. All escrow and transaction records must be retained at the sponsoring broker's office for five years. Escrow and transaction records related to active or pending transactions must be maintained at the sponsoring broker's office. Escrow records three years old and newer must be maintained at the sponsoring broker's office.

Escrow and transaction records related to active or pending transactions must be maintained at the sponsoring broker's office. In Illinois, escrow and transaction records related to active or pending transactions must be available for easy review at the sponsoring broker's office. Escrow records two years old and newer must be at the office location.

How frequently should the contract between a broker and an independent contractor be renewed? Every 6 months Every year but no later than 15 months from the previous one Every two years Every three years

Every year but no later than 15 months from the previous one The contract between the broker and the independent contractor-salesperson or -associate broker should be renewed each year to update terms.

Elvin owns 150 acres of prime hunting land. Every year, he gets requests from private groups that would like to use his land for a day or two during hunting season. He sometimes grants these requests, but this year, he's decided to only use it himself with his friends. Which right in the bundle of rights says that he can say no to these requests? Control Enjoyment Exclusion Possession

Exclusion The right of exclusion gives Elvin the right to refuse others the use of his own property.

Anthony is in-contract with a broker to sell his property. Anthony's contract with the broker states that he will pay a commission to the broker that sells the property. What type of agency agreement does this best describe? Exclusive agency listing agreement Net listing agreement Exclusive-right-to-sell listing agreement Open listing

Exclusive agency listing agreement An exclusive agency listing agreement is one which states the principal will pay a commission to the broker who procures the buyer

Which agency enforces federal fair housing laws? FHA FHEO NFHA NHA

FHEO The Office of Fair Housing and Equal Opportunity (FHEO) administers and enforces fair housing laws.

Which act created an agency to investigate antitrust practices? Attorney General Act Clayton Act Federal Trade Commission Act Sherman Antitrust Act

Federal Trade Commission Act The Federal Trade Commission Act created the FTC. This agency investigates practices and will stop companies and individuals from committing antitrust violations.

In Illinois, how long must completed real estate forms be kept on file with the sponsoring broker? At least six months Five years One year Three years

Five years Sponsoring brokers must keep transaction records on file in hard copy or electronically for five years.

Which of the following factors might an online closing cost calculator not take into account? Flood insurance premiums Homeowners insurance premiums Loan origination fees Prorated expenses

Flood insurance premiums Online calculators may not take localized factors such as required flood insurance or regional taxes and fees into consideration.

Stu is buying Freddie's property. What must occur for the transfer of title to take place? Freddie and Stu must sign the deed. Freddie must intend to convey the property to Stu. Stu must convey the deed. Stu must sign the deed.

Freddie must intend to convey the property to Stu. The seller (grantor) must deliver a marketable title. The grantee isn't required to sign.

Susie is the seller's agent for a transaction in which April (another agent from her brokerage) helped her by hosting three open houses for her seller client Gianna's property. From whom will April receive her compensation? From Gianna From Susie From their sponsoring broker It depends on what's been negotiated in the brokerage agreement.

From their sponsoring broker Licensees may receive compensation for real estate services only through their own sponsoring broker.

Illinois licensee Celeste frequently asks agents at her brokerage to help her host open houses because she is so busy. From whom will the other agents receive their commission? From Celeste From the buyer or seller From their sponsoring broker Other agents aren't permitted to receive compensation for hosting open houses.

From their sponsoring broker. Licensees may receive compensation for real estate services only through their own sponsoring broker.

As the property manager, Galena places security deposits in an interest-bearing account for her landlord, who owns 42 rental units. Galena isn't permitted to accept a lease term of under one year. Which of these statements is FALSE? Galena must deposit all security deposit funds the next business day after receipt. Galena must pay each tenant the interest earned on their deposit monthly. Galena must refund interest to the tenants at least once annually. The account into which Galena deposits these funds must pay at least as much interest as the state's largest commercial bank.

Galena must pay each tenant the interest earned on their deposit monthly. Landlords must annually disburse to tenants any interest earned on their security deposits.

Illinois licensee Kelly represents Abigail, who's selling her home to the Scotts, who are represented by licensee Gary. Both Kelly and Gary work for Aaron, the sponsoring broker at ABC Brokerage. Who is acting as a designated agent, or agents, in this scenario? Gary Gary and Kelly Gary, Kelly, and Abigail Kelly

Gary and Kelly In Illinois, the sponsoring broker identifies the licensee who represents the client as the client's designated agent. Aaron has designated Gary and Kelly as designated agents, but is not a designated agent himself.

Ginnie's Illinois broker's license expires in two months. She was worried about her CE credits, but she's feeling proud of herself now. She knocked out her first eight hours of CE in one day! Now off to the next class tomorrow for four more hours, and she's finished. Which of these statements is FALSE? Ginnie can complete 12 hours of CE credit in any one 24-hour period. Ginnie can complete no more than eight hours of CE credit in a 24-hour period. Ginnie can take any given CE course just once in any renewal period. Ginnie needs 12 hours of CE coursework every renewal period.

Ginnie can complete no more than eight hours of CE credit in a 24-hour period. Ginnie is in good shape. Illinois law permits licensees to earn up to 12 hours of CE credit in a 24-hour period.

Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have? Graduated lease Gross lease Net lease Percentage lease

Gross lease In a gross lease, all expenses related to the property, such as taxes, insurance, and maintenance, are part of the lease payment.

Grant owns a parking structure in Chicago. One of his renters, Millie, hasn't paid rent in three months. What are Grant's options? He can just lock Millie out. He is required to give 72 hours' notice before evicting. He must send an eviction letter to Millie by registered mail. He will have to take Millie to small claims court.

He can just lock Millie out. There are many benefits to owning a parking structure. One big one is that almost every transaction is simpler than owning a home. Keep this in mind when choosing a property to rent out.

Dylan, a sponsored broker, is sending out marketing emails to contacts he collected from open house sign-in sheets. Which of these rules must he follow in order to comply with Illinois license law? He may only send marketing emails to these contacts within three months of the date when the recipient first provided contact information, unless they subsequently become his clients. He may send only one unsolicited email to each recipient per month. He must include his name, his sponsoring broker's name, and a link to his sponsoring broker's main website on the first or last page of the email. He must include his name, the business name of his sponsoring broker, and the city and state where the principal office is located on the first or last page of the email.

He must include his name, the business name of his sponsoring broker, and the city and state where the principal office is located on the first or last page of the email. Illinois license law requires Dylan to include his name, the business name of his sponsoring broker, and the city and state where the main office is located on either the first or last page of all electronic communications.

Illinois licensee Albert is completing his designated agency disclosures to his client Patty. He's walked her through the written disclosures and must discuss with her the topics required by Illinois state law as part of those disclosures. What topics must Albert discuss? His brokerage's policy on funds handling and accounting His sponsoring broker's compensation and policy with regard to cooperating with brokers The different types of agency relationships that are available to Patty The fiduciary duties that he and his sponsoring broker will owe to Patty once the brokerage agreement is signed

His sponsoring broker's compensation and policy with regard to cooperating with brokers In addition to the written designated agency disclosure, Illinois licensees must also discuss with the client the sponsoring broker's compensation and policy with regard to cooperating with brokers who represent other parties in a transaction.

Which of the following licensees are allowed to work independently in Illinois without being sponsored? Associate brokers Brokers Managing brokers Residential leasing agents

Managing broker Only a managing broker operating as sole proprietorship can practice real estate independently in Illinois.

Christy found a property that was for sale by owner and made an offer. The seller accepted Christy's offer, but neither of them knew how to proceed. Licensee Zelda helped Christy complete the necessary purchase documents and walked her through the process. What kind of agency exists? Confirmed agency Express agency Implied agency Verbal agency

Implied Agency Christy and Zelda never signed a formal agency agreement, but through Zelda's actions in her attempt to help Christy, she created an implied agency agreement.

Illinois requires that real estate companies keep current transactional and trust account records in a specific location. Where must companies keep these records? In a locked facility In secure file centers In the brokerage office On offsite servers

In the brokerage office Illinois require brokerages to keep current records in the brokerage office. After two years, records may be kept offsite. All records must be retained for a total of five years.

Which of the following licensees are allowed to work independently in Illinois without being sponsored? Associate brokers Brokers Managing brokers Residential leasing agents

Managing brokers Only a managing broker operating as sole proprietorship can practice real estate independently in Illinois.

Your home inspector Mason found some discoloration in the attic and near the windows on the second floor. Why does he think this may be a concern? Dark stains in the attic could mean plumbing problems. It could be a sign of fire damage. It means that the homeowners haven't insulated well. It's indicative of insect activity.

It could be a sign of fire damage.

Which statement regarding a Veterans Affairs (VA) mortgage is FALSE? It does not have minimum property requirements It does not require mortgage insurance It does not require a down payment It does not have a maximum debt ratio

It does not have minimum property requirements A VA mortgage does have minimum property requirements in order to ensure the veteran-buyer the property is safe, sanitary and sound.

Which of these statements is true of an Illinois exclusive listing agreement? It creates an agreement between the designated agent and the seller. It is considered active for as long as the property remains unsold, or until the designated agent and the client agree to cancel their agency relationship. It may be either written or oral. It must include a clear statement that discriminatory behavior against protected classes under the Illinois Human Rights Act by either the owner or the broker is illegal.

It must include a clear statement that discriminatory behavior against protected classes under the Illinois Human Rights Act by either the owner or the broker is illegal. One of the legally required provisions of a listing agreement in Illinois is a statement notifying the client that discriminatory behavior against protected classes is illegal.

Which of these statements about a deed's habendum clause is true? It describes any easements or liens against the property. It's a description of the act of conveyance. It's required in all deeds. It's the full legal property description.

It's a description of the act of conveyance. The habendum clause, if used, describes the type of conveyance. It's typically used if title being conveyed is less than fee simple.

Thebiggestbaddestcoolestsellerinthewindycity@Trustworthyagency.com is a bad email address because __________. Dot-com addresses cannot be used for real estate transactions. It's hard for someone to remember. It's too long for an email server. It won't fit on a flyer.

It's hard for someone to remember. Be careful using an email address that is hard to remember.

Which of the following statements about the fiduciary duty of disclosure is true? It only applies to the seller's agent. It requires licensees to disclose everything to all parties. It's owed to other parties, not just to the licensee's clients. It's owed to the licensee's clients only.

It's owed to the licensee's clients only. In most states, licensees are required to disclose material facts to all parties to the contract. However, the FIDUCIARY duty of disclosure is due only to the licensee's clients.

Ivan qualifies for and takes advantage of the Illinois Senior Citizens Assessment Freeze Homestead Exemption. Which of these is true? Ivan isn't permitted to make any improvements to his property as long as the exemption is in place. Ivan's property tax bill will never increase as long as he qualifies for the exemption. Ivan's tax bill can only go up as much as the published rate of inflation every year. Ivan's tax bill may go up even with the exemption in place if he makes property improvements.

Ivan's tax bill may go up even with the exemption in place if he makes property improvements. This exemption freezes the property's assessed value, though taxes may go up if Ivan makes improvements to the property or tax rates increase.

Marsha's title insurance policy was issued on closing day, which was June 18. The policy lists the standard exclusions as well as requirements for the company to issue the policy, such as paying off existing recorded liens. Which one of these will NOT be addressed in the schedule of exceptions? Marsha's second mortgage on the property, which she plans to get next January Marsha's unrecorded lease on the property Smith and Martin Building and Rehab's mechanic's lien, which was filed on June 18 The local cable company's unrecorded easement through the property for underground wiring. Marsha disclosed this to the title company

Marsha's second mortgage on the property, which she plans to get next January Title insurance typically covers events or claims filed on the public record before the title insurance policy's effective date but excludes disclosed and undisclosed easements.

Which ownership type is defined by four unities: time, title, interest, and possession? Freehold estate Joint tenancy Tenancy by the entirety Tenancy in common

Joint tenancy This is joint tenancy. Tenancy by the entirety requires a fifth unity (person). If one joint tenant dies, that tenant's interests go to the remaining joint tenants. If only one tenant is left, that tenant owns the property in severalty.

Trish is thrilled that her client, Josh, has had his offer accepted on a new home. Who should she tell him is responsible for getting an appraisal of the property prior to closing? Josh The lender The seller The title insurance company

Josh If financing is being used, the buyer's lender will require the buyer to obtain an appraisal.

Which of these is an example of severability? Jules and Katrina are under contract for the purchase of Katrina's house. A dispute arises over some contract terms, and they end up in court. The court rules one of the terms invalid but leaves the remainder of the contract in force. Mark's contract with Reuben states that either party may sever the contract if any contract term is only partially performed. Misty's lease agreement with Thomas contains a provision that permits her to sever the lease if Thomas doesn't remodel the apartment as promised. Ricardo and Timothy are under contract in the sale of Ricardo's office building. Ricardo's tenant leases gives him the option to sever the lease agreements upon sale of the building.

Jules and Katrina are under contract for the purchase of Katrina's house. A dispute arises over some contract terms, and they end up in court. The court rules one of the terms invalid but leaves the remainder of the contract in force. Severability refers to the concept that a court can strike down one or more contract terms while leaving the remainder in place.

Larry created an Illinois land trust agreement naming Renken Properties, Inc., as the trustee, and himself as the beneficiary. Which of these statements is NOT true? Larry retains complete control of the property during the trust's term. Larry's interest in the property is considered real property. Renken can make decisions regarding the property as long as it's held in trust. Renken can release Larry's name as the beneficiary if questioned.

Larry's interest in the property is considered real property. As the beneficiary, Larry retains full control of the property; his identity can't be made public (except under court order). His interest is considered personal property so it's more easily sold, pledged, or assigned than if it were real property.

Where will you find official documentation about the licensing of Illinois real estate professionals? Codes of conduct Laws and regulations Ordinances Zoning codes

Laws and regulations License laws are recorded as laws or as regulations. The Illinois Real Estate License Act of 2000 (as amended in 2018) provides the primary guidance for real estate licensees.

Typical dual agency—as it exists in many other states—allows for two different relationship scenarios that produce dual agency, but Illinois only allows for one. Which of the following scenarios, recognized as dual agency in other states, does not produce dual agency in Illinois? Licensee Roy has been designated to represent the new seller clients his brokerage has taken on. Licensee Roy represents the buyers in a transaction, and another licensee from his brokerage, Michael, represents the seller. Both parties are represented by the same brokerage, which makes it a dual agency situation. Licensee Roy represents the sellers in a transaction, and in another transaction, he represents the same party as buyers. Licensee Roy represents the sellers in a transaction. When unrepresented buyers express interest, Roy becomes their agent as well, representing both parties himself.

Licensee Roy represents the buyers in a transaction, and another licensee from his brokerage, Michael, represents the seller. Both parties are represented by the same brokerage, which makes it a dual agency situation. In some states that allow dual agency, two licensees under the same broker representing the two parties will produce dual agency, with the broker as dual agent. In Illinois, dual agency only exists when a single licensee represents both parties.

What is the overarching theme addressed by statutory duties in most states? Licensees may not take any action that might be detrimental to the client's legal interests. Licensees must maintain the client's confidentiality. Licensees must make all required disclosures. Licensees must properly account for all money and properties entrusted to them.

Licensees may not take any action that might be detrimental to the client's legal interests. The overarching theme of statutory duties is that licensees can't take any action that would adversely impact the client's legal interests.

Which of these statements regarding disclosure under the Illinois Real Estate License Act of 2000 is FALSE? Buyer's agents must disclose to all parties when they are simultaneously presenting offers from two buyer clients for the same property. Licensees must disclose any expected compensation, including referral fees in excess of 1% of the purchase price. Licensees must only disclose defects that can be discovered through a reasonably diligent property inspection. When licensees have a personal interest in a transaction, they must disclose their license status.

Licensees must only disclose defects that can be discovered through a reasonably diligent property inspection. Licensees must disclose all known adverse material defects, including those that may not be discovered through a reasonably diligent property inspection.

Under the statute of ______, if legal remedy is sought against a person, the pursuer must bring a court action within a specified period of time. Efficiency Fairness Limitations Timeliness

Limitations The statute of limitations is a law that states that if legal remedy is sought against a person, the pursuer must bring a court action within a specified period of time.

Which of these can restrict the amount a seller may contribute toward closing costs? Loan type and amount Loan type and down payment Nothing Sales price and loan type

Loan type and down payment Restrictions on the amount sellers may contribute toward closing costs are based on the loan type (conventional or government) and down payment amount.

Which legal description method uses compass headings and directions? Block and grid Lot and block Metes and bounds Rectangular government survey

Metes and bounds Metes and bounds uses compass headings and directions. The rectangular system divides land into townships and further divides those into sections.

A bank letter to the borrower saying that it will fund a mortgage loan is known as a Rate lock Pre-approval Pre-qualification Mortgage commitment

Mortgage commitment The lender's agreement to fund a home loan is written in the form of a mortgage or loan commitment letter, which creates a contract to make the loan.

Which of these landlord actions would NOT be considered a reasonable accommodation? Allowing assistance animals when there's a "no pets" policy Assigning a parking space close to the building when the general policy is that there is no assigned parking Moving disabled tenants to units near an elevator Permitting transfers to a ground-floor unit

Moving disabled tenants to units near an elevator Allowing a tenant to transfer to a more accessible unit (which is reasonable) is different than forcing a tenant to move to a different unit.

Select the statement about Illinois transfer taxes that is FALSE. Illinois charges a transfer tax on the conveyance of all real property. Municipalities and other entities are prohibited from charging additional transfer taxes. Property transferred from the City of Chicago to a private party is exempt. Transfer taxes for the state and various municipalities are calculated per every $500 or part thereof.

Municipalities and other entities are prohibited from charging additional transfer taxes. Many municipalities and other entities charge their own transfer taxes in addition to the state tax.

In which of these situations is Derek, the licensee representing Jorge and Ramah, responsible for completing and providing a written property disclosure to buyers? Derek is aware of property conditions that Jorge and Ramah have chosen not to disclose on the Illinois Residential Real Property Disclosure Report. Jorge and Ramah aren't sure how to complete the Illinois Residential Real Property Disclosure Report. Jorge and Ramah have refused to complete the Illinois Residential Real Property Disclosure Report. Never. Sellers, not the licensee, must complete the Illinois Residential Real Property Disclosure Report.

Never. Sellers, not the licensee, must complete the Illinois Residential Real Property Disclosure Report. While licensees may be required to disclose known material defects that sellers don't disclose, it's never appropriate for a licensee to complete the Residential Real Property Disclosure Report.

Marcus submits an offer to purchase a home from Iris. Iris, wishing to keep the foyer chandelier, adds to the contract the words "foyer chandelier not included" before signing and returning it to Marcus. Is the contact binding? Yes, Iris only made an insignificant change No, Iris rejected Marcus' offer AND to be binding, Iris' counteroffer must now be accepted by Marcus without further change No, Iris rejected Marcus' offer No, to be binding, Iris' counteroffer must now be accepted by Marcus without further change

No, Iris rejected Marcus' offer AND to be binding, Iris' counteroffer must now be accepted by Marcus without further change. To create a contract, the accepted terms of the deal must not vary. A counteroffer is essentially a rejection, a change and a new offer.

Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee a commission? No, because Carol is not a real estate licensee. No, because Carol procured the buyer. Yes, because they have an exclusive agency listing agreement. Yes, but she only owes the listing commission.

No, because Carol procured the buyer. It's easy to confuse the types of listing agreements. With exclusive agency, the seller retains the right to sell the property and not pay a commission. Exclusive right to sell agreements guarantee payment to the listing agent no matter who brings the buyer.

Chip, an Illinois licensee, is representing the seller in a short sale. Chip is interested in purchasing the property himself. Can he act as a dual agent in the transaction? No, because Illinois law prohibits a licensee acting as a dual agent in these types of situations. No, because the personal interest disclosure requirement doesn't apply to distressed properties. Yes, as long as he provides a personal interest disclosure to his client. Yes, as long as his client has given initial consent to dual agency and has confirmed the consent.

No, because Illinois law prohibits a licensee acting as a dual agent in these types of situations. Illinois law prohibits a licensee from acting as a dual agent in a transaction in which the licensee has an ownership interest or is representing an entity in which the licensee has or will have an ownership interest.

Your client is purchasing a single-family home with a conventional loan. The listing price is $150,000. Does this situation require a licensed or certified appraiser? No, since conventional financing does not require an appraisal. No, since the sales price is less than $400,000. Yes, all property transfers require an appraisal. Yes, properties with sales prices of less than $175,000 require a certified appraiser.

No, since the sales price is less than $400,000. Federal law exempts this property from the certified appraisal requirement because the sales price is less than $400,000. However, it's always a good policy to pay for the best available service or product, regardless of the lender's legal obligation.

Illinois licensee Craig is working with buyer client Heather. Before performing any agency duties for her, Craig presented Heather with a brokerage agreement to solidify their buyer representation relationship. They both signed it, and he then explained that they were in a designated agency relationship, along with explaining his brokerage's policies on compensation and working with other brokers. Has Craig fulfilled his designated agency disclosure requirements? No. Craig is also required to disclose that he does not represent the seller of the home Heather is interested in, so he hasn't met the requirements. No. The designated agency disclosure must be made in writing. Because Craig only disclosed it verbally, he hasn't met the state requirement. Yes. The designated agency disclosure can be made in or along with the brokerage agreement, so he has met the requirement. Yes. The designated agency disclosure must be made before any agency duties are performed, so he has met the requirement.

No. The designated agency disclosure must be made in writing. Because Craig only disclosed it verbally, he hasn't met the state requirement.

When a contract of sale is signed and the buyer's earnest money check is deposited in the special account, the money belongs to? Nobody, until the transaction is either completed, rescinded, or breached The buyer, as a rebate for the purchase The seller, as a portion of his/her capital gain The licensee, as a pre-payment of the commission

Nobody, until the transaction is either completed, rescinded, or breached When the transaction is completed, either party may or may not receive all or part of the money. Since it is held in trust, earnest money never belongs to the broker. Notwithstanding the foregoing, the parties, in their sole discretion, can agree on how to handle the disposition of earnest money.

Matthew signed a 120-day listing with FARE Realty. After 80 days, Matthew decided not to sell. He told FARE Realty he no longer wanted them to market his house. When is the agency of FARE Realty terminated? On the 121st day After a reasonable time On the 81st day When the listing expires

On the 81st day An agency relationship may be terminated at any time.

How long does a licensee relocating to Illinois have to complete all the reciprocity requirements? 30 days Five years One year Six months

One year A licensee has one year to complete all the requirements for reciprocity when relocating to Illinois. This includes paying the fee, submitting the application and sponsor card, providing proof of a held license in another state, and earning a passing grade on the exam covering Illinois brokerage laws.

Patsy's home had been on the market for five weeks, and two brokers had buyers who were ready to make offers. If Patsy accepted one of those offers, the corresponding broker would be the only one to earn a commission. What type of listing does this describe? Exclusive agency Exclusive right to sell Net listing Open listing

Open listing With an open listing, only the broker who brings the buyer earns a commission.

In the conveyance of real property after death, what takes precedent over any terms specified in the deceased person's will? Heirs' wishes Intestate Nothing Operation of law

Operation of law Operation of law takes precedent in a will. It says that what's legally required must be satisfied before the terms of the will apply.

Certain properties are exempt from fair housing law requirements. Which of the following properties is NOT exempt? A church Housing designated as housing for older persons Housing operated by organizations and private clubs that limit occupancy to members Owner-occupied buildings with fewer than four units being marketed by a real estate licensee

Owner-occupied buildings with fewer than four units being marketed by a real estate licensee The exemption that normally applies to owners of one- to four-family dwellings is moot when a licensee is involved. That's because the law presumes agents are professionally trained and are aware that housing discrimination is against the law.

Which of the following financing types involves the sale of personal property with the real property? Blanket Package Security Wrap-around

Package When personal and real property are bundled together, it is called a package loan.

In Illinois, beneficiary interest in land that's part of a land trust is considered ______. Personal property Protected from creditors Real property Subject to partition

Personal Property When real property is conveyed to a trust, the trust becomes the owner. The owner who transferred the interest holds a beneficial interest in the property. This interest is considered personal property, though what the interest conveyed is real property.

Attorneys performing real estate activities under a properly executed ______ are exempt from Illinois real estate license requirements. Agency disclosure Buyer representation agreement Notice of no agency Power of attorney

Power of attorney Attorneys working under a properly executed power of attorney may engage in real estate activities without a real estate license.

Which document is used to give a buyer an overview of the title history and information about what is or isn't covered in an insurance policy? Abstract of title Guarantee of title Preliminary report Title insurance

Preliminary report Title insurance companies issue a preliminary report with the current title history and any liens or encumbrances. It outlines what the insurance company will or won't cover on its forthcoming insurance policy if the title is found to be acceptable.

When a higher-quality property is adjacent to a lower-quality property, it can increase the lower-quality property's value. What economic principle of value is this? Anticipation Contribution Progression Regression

Progression Progression is the bump in value that a lower-value property gets by being near a higher-value property.

Based on Illinois law, which of the following is considered a ministerial act? Advising the opposing party on what to include in an offer or counter-offer Assisting the opposing party in evaluating an offer Negotiating on behalf of the opposing party Providing the opposing party with signed copies of paperwork

Providing the opposing party with signed copies of paperwork Providing copies of paperwork does not involve judgment, advocacy, or negotiation. This is a ministerial act.

A fire has destroyed the office building and all escrow account records at Landscape Realty in Illinois. Which of the following division requirements will enable the managing broker to begin restoring operations? Employing a full-time off-site record manager Retaining back-up copies of escrow account records Storing escrow account records in an off-site secure facility Uploading digital copies of escrow account records and shredding all original records

Retaining back-up copies of escrow account records If escrow records are lost, destroyed, or stolen, a managing broker must notify the IDFPR enforcement division within 30 days by signature-restricted delivery.

Charlene just started as Phillip's assistant at Homefinders Realty. Which of the following of these tasks is she NOT allowed to perform? Ask Kenny to call an irate client who's threatened to cancel a listing contract ASAP. Draft monthly client and prospective client newsletters. Organize past transaction files. Review the brokerage agreement with the Chachos who are new clients and show them where they need to sign.

Review the brokerage agreement with the Chachos who are new clients and show them where they need to sign. This task is left to the licensee due to the liability and level of knowledge needed to explain to a client.

Sandy, a 16-year old, enters into a contract to buy a condo from Sue, an adult. Which statement is TRUE? Sandy can void any portion of the contract any time before the transaction is closed. Sandy or Sue can void the entire contract any time before the transaction is closed. Sandy can void the entire contract any time before the transaction is closed. The contract is considered void because Sandy is not permitted to enter into a real estate contract.

Sandy can void the entire contract any time before the transaction is closed. It is true that Sandy, a 16-year old minor, can void the entire contract any time before the transaction is closed. Minors are permitted to enter into a contract; however, the law provides certain protections to minors that are not granted to adults.

Which of these is NOT an example of a group boycott? Acme Realty offers discounted services. Berringer Realty and Hawthorne Real Estate Group decide not to show any of Acme's listings and to prohibit showings to Acme buyers so they can drive Acme out of business. Deb, a licensee, is unhappy with the marketing materials a local company produced. She shares her concerns with Irving, a colleague, and they agree to avoid doing business with this company—and to share the news with other colleagues. Sean and the associated brokers in his firm agree to purchase their marketing materials from a single supplier so they get a quantity discount. Several brokerages in a certain area agree to stop running advertisements in a local publication.

Sean and the associated brokers in his firm agree to purchase their marketing materials from a single supplier so they get a quantity discount. A brokerage firm can elect to do all of its business for supplies, advertising, etc., with a single vendor. This isn't a group boycott because the firm isn't agreeing to not do business with any other specific business.

An easement dictates that property owner A gives the right to property owner B to use a portion of the property. Which term describes property A? Domain estate Dominant estate Service estate Servient estate

Servient estate Property A is the servient estate. It serves the dominant estate, Property B.

Beverly holds an active New York broker's license. She's worked for a broker for several years, and her license is in good standing. Under Illinois reciprocity regulations, which of the following is correct? All she must do is submit $100 and a transfer application. She must complete all Illinois pre-licensing coursework and pass both portions of the licensing exam. She must complete only the state portion of the Illinois licensing exam. She's eligible for an Illinois broker's license.

She must complete all Illinois pre-licensing coursework and pass both portions of the licensing exam. Illinois doesn't have a reciprocity agreement with New York, so Beverly must complete the entire Illinois pre-licensing process.

Adrienne's investor client is considering a few different fixers. Adrienne is going to prepare market analyses on the properties to see which one is the best deal. How will she go about this? Market analyses can't be conducted on fixers or distressed properties due to a lack of comparable properties. She'll follow the same procedure as she would for a non-distressed property. She'll follow the specific procedure for fixers and distressed properties. She'll use historic MLS data to try to figure out what the properties would be worth if they weren't fixers.

She'll follow the specific procedure for fixers and distressed properties. She'll follow the specific procedure for fixers and distressed properties. It's not likely she'll find three to six recently sold fixers as comparables for the fixers under consideration.

When licensees assist sellers with a ______, they should be prepared to provide the lender with a packet of documents for evaluation. Deed-in-lieu Foreclosure REO Short sale

Short sale Lenders request a short-sale packet to evaluate the benefits of agreeing to the short sale rather than foreclosing.

In order for a deed to be valid, which two elements are required? Habendum clause and habeus corpus clause Signature of the grantee and habendum clause Signature of the grantor and consideration Signatures of the grantee and grantor

Signature of the grantor and consideration Only the grantor's signature is required, not the grantee's. Consideration is also a required element.

Which of these license designations does NOT require a separate examination? Associate broker Broker Managing broker Sponsoring broker

Sponsoring broker A sponsoring broker holds a managing broker's license, so no separate examination is required.

Which of these statements about the Illinois sponsoring broker exam is true? Candidates who fail just one portion of the exam will be permitted to re-take just the failed portion. Candidates will be presented with simulation problems and essay questions on the licensing exam. Sponsoring broker candidates must pass the licensing exam with a scaled score of 75%. Sponsoring brokers don't take a separate exam.

Sponsoring brokers do not take a separate exam. Sponsoring brokers hold a managing broker's license; there's not a separate exam.

Teague runs her own Illinois real estate firm. Michael is a broker, Constance has her managing broker's license, and Monica is a residential leasing agent for the firm. Who supervises whom? Constance supervises everyone. Constance supervises Teague, and Teague supervises Michael and Monica. Michael supervises everyone. Teague supervises everyone.

Teague supervises everyone.

If a buyer's earnest money check is returned for insufficient funds after being deposited into the broker's trust account, the broker should: Resign the agency Cover the bad check personally Tell the seller or cooperating broker that the check bounced File a police report

Tell the seller or cooperating broker that the check bounced Although the broker's client may be able tore place the funds quickly, the broker should inform the cooperating broker/seller immediately. An unfunded bank check is material fact (and possibly fraud). Licensees should avoid the appearance of impropriety, protect the public and disclose material facts concerning a transaction

Which of these statements most accurately represents existing federal antitrust legislation? The Clayton Act supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly. The Federal Trade Commission Act established the Sherman and Clayton acts to prevent collusive activities that limit competition. The Federal Trade Commission Act prevents one large firm from acquiring another similar firm that would result in a restraint of trade. The Sherman Antitrust Act was passed to supplement the Clayton Act in an effort to prevent mergers that create monopolies.

The Clayton Act supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly. The Clayton Act of 1914 supports the Sherman Antitrust Act of 1890 by prohibiting mergers or acquisitions that would result in an unreasonable reduction in competition or the creation of monopolies.

What's the relationship between TILA, RESPA, and TRID? The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID). TILA and RESPA require lenders to use TRID. TILA, RESPA, and TRID mandate the lender disclosures required for federally related transactions. TRID mandates the type of disclosures for TILA- and RESPA-related transactions.

The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID). TRID stands for TILA-RESPA Integrated Disclosures, which the Dodd-Frank Act implemented for all federally related mortgage transactions.

Jessica is a first-time homebuyer in Illinois. Where can she get financial assistance to help her with the down payment for her home? The Illinois Affordable Housing Tax Credit Act The Illinois Down Payment Assistance Fund The Illinois Housing and Rental Assistance Association The Illinois Housing Development Authority

The Illinois Housing Development Authority The Illinois Housing Development Authority (IHDA) provides various homeownership and rental assistance programs.

A borrower has no protection from a deficiency judgment when ______________. A consent foreclosure is approved by the lender A deed in lieu of foreclosure is approved by the lender A non-judicial foreclosure is pursued by the lender The auction sale price is less than the mortgage balance

The auction sale price is less than the mortgage balance The lender will file a deficiency judgment against the borrower when there's a loan balance after the foreclosure auction.

In Illinois, what's the listing broker's responsibility when it comes to a property's material defects? The broker has no responsibility relative to material defects. The broker must complete all property disclosure forms. The broker must disclose any known material defects to the buyer. The broker must disclose any material conditions, but only if asked.

The broker must disclose any known material defects to the buyer. Illinois law requires a listing broker to disclose all known adverse material facts.

Kathy is going over all of the tasks that need to be completed prior to closing. Who is typically responsible for ordering and reviewing a survey of the property? he buyer The lender The seller The title insurance representative

The buyer It generally falls upon the buyer to ensure there aren't any encroachments and to determine the property's boundaries.

In which of these situations would the property be exempt from Illinois transfer tax? Genesis inherited a home from her mother. Hammer and Nail Development raffled off a permanently located tiny home and the lot it occupies. The city of Chicago sold an office building to a private party. Trisha, as executor of her grandmother's will, sold her grandmother's home to her niece.

The city of Chicago sold an office building to a private party. Properties conveyed by or from any government body are exempt from transfer tax.

Tom and Martha live in a neighborhood where lawn ornaments are prohibited. They want to put up a nativity scene at Christmas and argue that the covenant doesn't apply to temporary decorations but only to permanent ones. Their homeowners association disagrees. Which entity enforces subdivision covenants? The civil court system The homeowners association The municipal code enforcement agency The original developer of the neighborhood

The civil court system. Covenants are enforced through the court system if an agreement can't otherwise be reached.

The loan type and the amount of down payment impact _______. The closing costs the seller may contribute The closing date The loan origination fee charged The seller's net proceeds

The closing costs the seller may contribute The amount that a seller may contribute toward closing costs is based on the loan type and the amount of the down payment.

Illinois licensee Shawn is meeting with his seller clients, the Martins. Within the brokerage agreement is a statement that a designated agency relationship exists, and he intends to explain his brokerage's policies on compensation and working with cooperating brokers. What else must be disclosed to satisfy the state's designated agency disclosure requirements? A description of other forms of agency available to the consumer A list of licensees from which to choose their designated agent An opt out of designated agency option The designated agent's name

The designated agent's name In Illinois, the designated agency disclosure must clearly state that a designated agency relationship exists, unless otherwise agreed to, and must list the name of the designated agent.

June's firm uses an electronic accounting system to maintain its escrow records. Which of these statements about these records is true? The firm must back up and print all escrow records at least every 60 days. The firm must back up and print all escrow records every month. The firm must maintain all escrow records on site for at least two years. The firm must permanently retain all escrow records on site.

The firm must maintain all escrow records on site for at least two years. The firm must retain escrow records on site for two years; if for some reason transaction escrow funds haven't been disbursed, those records must remain on site as well. The firm must make a print copy of electronic escrow journals at least monthly.

Carissa is an Illinois broker. Her managing broker, Thomas, is also the firm's sponsoring broker. The staff includes one licensed residential leasing agent, Reuben. Which of these statements about license renewals is true? Carissa's license expires on June 31 of each even-numbered year. Reuben's license expires on July 31 of each odd-numbered year. The firm's license expires on October 31 of each even-numbered year. Thomas's license expires on April 30 of each even-numbered year.

The firm's license expires on October 31 of each even-numbered year. All Illinois licenses except managing broker's licenses expire in even-numbered years; brokers renew on April 30, residential leasing agents on July 31, and firms on October 31. Managing brokers must renew on April 30 of each odd-numbered year.

Lakeshore Homes has received notice that its sponsoring broker license is being suspended. Which of these statements best describes the impact of this suspension? The firm is permitted to operate for 30 days without a licensed sponsoring broker. The firm's licensees can continue to operate as usual until a new sponsoring broker is in place. The firm's licensees may not perform real estate brokerage services until a new sponsoring broker is in place. The managing broker can temporarily serve as the sponsoring broker.

The firm's licensees may not perform real estate brokerage services until a new sponsoring broker is in place. Illinois brokerage firms cannot operate without a sponsoring broker in place. Lakeshore Homes affiliated licensees are inoperative until the sponsoring broker's license is restored or the licensees get another sponsor.

A sponsoring broker who can't locate the principals for return of escrow funds can NOT turn over the funds to _____. An agency designated under the Real Estate License Act An office designated by the Uniform Disposition of Unclaimed Property Act The governor's office The state treasurer

The governor's office When sponsoring brokers can't locate the principals to a transaction, they may turn over the funds to the state treasurer or another agency or office designated under the Real Estate License Act or the Uniform Disposition of Unclaimed Property Act.

Olivia took out a 15-year loan secured with a deed of trust. She worked two jobs in order to pay the loan back and finally made her last payment this month. What happens now? The lender releases the deed of trust that secured her mortgage loan. The lender releases the mortgage that secured her mortgage loan. The lender tells the trustee to release the title to Olivia. The trustee releases the mortgage that secured her mortgage loan.

The lender tells the trustee to release the title to Olivia. Because the property deed was held by a third-party trustee instead of the lender, the trustee grants a reconveyance deed to Olivia, which grants her the title.

Roger, an Illinois broker working for Metro Homes, lists a property for seller clients Trina and Samuel. Roger's sponsoring broker is Ted Britton and his managing broker is Sonjay Treva. Which of these statements about the relationship is true? Roger's managing broker will designate him as Trina and Samuel's agent. The listing agreement is between Sanjay, Trina, and Samuel. The listing agreement is between Trina, Samuel, and Metros Homes. The listing agreement is between Trina, Samuel, and Roger.

The listing agreement is between Trina, Samuel, and Metros Homes. Buyer or seller agency agreements are agreements between the clients and the sponsoring broker, not the listing or selling broker.

Real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud? Agency disclosures Buyer representation agreement The original sales agreement and any addenda The title

The original sales agreement and any addenda The original sales agreement and any addenda to that agreement must be accurate. They should clearly identify the property and all parties to the transaction.

Tawonda, a licensed Illinois broker, has been taken to court six times on various charges, including misrepresentation and breach of confidentiality. The court has awarded a judgment to each of the plaintiffs, but Tawonda has no money. Which of these statements about the plaintiffs' ability to receive compensation from the Illinois Real Estate Recovery Fund is true? Each of the plaintiffs can recover up to the maximum of $25,000 plus court costs and attorney's fees. The plaintiffs may only seek compensation from the fund if they can prove the exam amount of monetary damages that Tawonda caused. The recovery fund caps the amount that can be recovered against any one licensee based on a single transaction. These plaintiffs will all have to seek compensation through the civil court system.

The recovery fund caps the amount that can be recovered against any one licensee based on a single transaction. Because the recovery fund caps the amount of reimbursement for any one licensee in a single transaction, some plaintiffs may not receive reimbursement from the fund (or may not receive the full amount of their losses).

Which of these could a landlord use the tenant's security deposit to pay for? A warped kitchen cabinet Dirty curtains The removal of half of the bedroom carpet Water marks in a sink where the protective coating has worn away

The removal of half of the bedroom carpet

What is a short sale? A property sale that occurs in less than one week A sale that fails to receive a high enough bid at auction and falls to the bank's ownership The forced sale of a home, due to the borrower defaulting on the mortgage loan The sale of a property for an amount that's less than what is owed, excluding closing costs

The sale of a property for an amount that's less than what is owed, excluding closing costs A short sale occurs when the market value of the home is less than what's owed, not including closing costs. Short sales happen due to financial hardship on the part of the borrower.

Reed is representing Janet and Todd in the sale of their Illinois home. Which of these correctly identifies the parties' responsibilities under the Illinois Radon Awareness Act? Janet and Todd must provide the buyer with verification that radon levels have been tested and mitigated as necessary. Reed must ensure that the sellers have the property tested for radon before listing it. The sellers must provide buyers with the required pamphlet and disclosure form before a contract is signed. The sellers must provide the required disclosure form and pamphlet any time before closing on the contract.

The sellers must provide buyers with the required pamphlet and disclosure form before a contract is signed. The Illinois Radon Awareness Act doesn't require that sellers mitigate radon levels or test for radon, but it does require that they provide a disclosure and information pamphlet.

Cassie just put an offer on a property that was being sold as a short sale. She's excited about the great deal she's getting on the property. What could cause Cassie's great deal to turn into a nightmare? The previous owner may redeem the property by paying Cassie at least 50% of the property's market value The seller's lender can review her credit and counter offer based on her income and financial assets The title insurance company may charge her additional fees after closing The title to the property may have hidden issues that could cost her a lot of money to clear

The title to the property may have hidden issues that could cost her a lot of money to clear A short sale transaction can come to a standstill until the cloud is cleared or resolved to the lender's satisfaction. Never encourage your client to move forward with a purchase that involves a clouded title. If an issue arose in the future, your license could be in jeopardy.

What may happen in a short sale transaction if a cloud on the title is discovered? The buyer will need to find a new lender. The buyer will need to increase the down payment. The transaction comes to a standstill until the cloud is cleared. The transaction proceeds as normal.

The transaction comes to a standstill until the cloud is cleared. A short sale transaction can come to a standstill until the cloud is cleared or resolved to the lender's satisfaction. Never encourage your client to move forward with a purchase that involves a clouded title. If an issue arose in the future, your license could be in jeopardy.

Developer A has a project planned that does not conform to the community zoning regulations and wants to make a change request. Which local land use group would the developer ask, and for what? The city council for a special use permit The planning board for a special use variance permit The town board for a variance The zoning board of appeals for a variance.

The zoning board of appeals for a variance The developer would make a request to the zoning board of appeals for a variance.

What are the main ways that license laws ensure consumer protection? They define standards, develop education standards, and create recurring revenue. They establish requirements, assess fees, and build education. They establish requirements, assess fees, and create recurring revenue. They establish requirements, define activities, and set standards.

They establish requirements, define activities, and set standards. License laws ensure consumer protection by establishing basic requirements for entry to the profession, defining activities that require a license, and setting conduct standards.

Which of these is illegal: disparate impact or disparate treatment? Disparate impact Disparate treatment These terms mean the same thing. They're both illegal.

They're both illegal. Both disparate impact and disparate treatment are illegal.

Why is the agency disclosure provided to potential buyers and sellers? To define the terms of a listing agreement or exclusive buyer agency agreement To define the terms of the listing agreement To explain the contractual obligations that the consumer has toward the agent To explain the duties that agents owe to consumers and other agents

To explain the duties that agents owe to consumers and other agents This disclosure provides consumers with information relating to duties under various types of agency.

Which one of these best describes the purpose of homestead laws? To prevent lenders from foreclosing against the property because of an unpaid mortgage loan To protect a portion of a homeowner's ownership interest against some types of liens To protect homeowners against federal or state tax liens To verify, through the property's chain of title, that the property was originally settled under state homesteading laws

To protect a portion of a homeowner's ownership interest against some types of liens Homestead exemptions protect a portion of the property's value from liens, but federal and state tax liens, mortgage liens that use the property as collateral, and mechanic's liens bypass the exemption.

Which type of buyer tends to look for a home with less space, with a similar or better quality of living? First-time buyer Retiree Trade-down buyer Trade-up buyer

Trade-down buyer

Tristan and his client Wendy just reviewed the home inspection report together and requested in writing that the seller repair several items. Who is responsible for following up and making sure the seller made the requested repairs? The seller The seller's agent Tristan Wendy

Tristian The licensee representing the buyer is responsible for tracking any issues the inspection uncovers and the sellers agree to repair to ensure that they are repaired prior to closing.

Because sellers really just want to know the list price, you should ________. Hold it off until the end to surprise them Phone it in, then ask if the sellers would like a listing appointment Start with that Try to keep sellers' interests while you build a case for the suggested list price

Try to keep sellers' interests while you build a case for the suggested list price Sellers need to know not only the list price, but how you arrived at the list price. Your presentation should build a solid case for the list price so that by the time it's presented, the sellers are already onboard.

Which of these accurately describes the Illinois Veteran's with Disabilities Exemption for Specially-Adapted Housing? Qualified veterans may deduct up to $100,000 of property taxes on their state income tax return. Up to $100,000 of the assessed property value for veterans with disabilities may be exempt. Up to $2,500 in property taxes may be exempt for qualifying veterans. Veterans are exempt from paying additional property taxes if adaptations to the property to accommodate a disability increase the property value.

Up to $100,000 of the assessed property value for veterans with disabilities may be exempt. This exemption allows qualifying veterans to deduct up to $100,000 of their property's assessed valuation under certain circumstances.

Adam works for a rental finding service. He's working with a landlord, Trendmaker Apartments. He just located a tenant for one of the apartments, and the tenant has signed a lease. Which of these statements is true? Adam is required to include the contract term, fee to be paid, unit type and location, and other information in the landlord's representation agreement. Adam is responsible for ensuring that the lease agreement is accurate. Illinois law prohibits licensees from have a dual agency relationship with a tenant and landlord. Upon entering into a lease contract, the tenant must be provided with specific information regarding the unit and the owner.

Upon entering into a lease contract, the tenant must be provided with specific information regarding the unit and the owner. Individuals who work for a rental finding service don't do so in a licensed capacity. They therefore don't represent either party, but work to bring the parties together. Tenants must be provided with specific information regarding the unit and the owner.

Which term refers to a permitted deviation from current zoning restrictions that allows an owner to use land for a purpose that's otherwise prohibited, and requires the owner to prove the zoning creates an unnecessary hardship? Moratorium Property variance Special use permit Use variance

Use variance A use variance is allowed when the land is used for a purpose that, under the current zoning restrictions, is prohibited and causes the property owner unnecessary hardship.

Sondra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented. Which essential element of a valid contract has Sondra not yet considered? Whether consent was voluntary Whether the contract has been translated into all possible languages Whether the contract is in writing Whether the parties are over 21

Whether consent was voluntary The only element Sondra hasn't considered is whether the consent to enter into the contract was voluntarily given. Only real estate contracts have to be in writing, and parties are legally competent to enter into contracts from the age of 18.

You represent a seller as a listing agent. Do you owe any duties to buyer agents? No, you owe no duties Only if the agent works in your office Yes, the duty to cooperate on showings Yes, the same duties you owe to the seller

Yes, the duty to cooperate on showings You owe buyer agents (or seller agents, if you're working with the buyer) the duty to cooperate on showings as well as honesty and fairness.

Illinois licensee Chet has one buyer client who might be interested in one of his seller client's properties. When does Chet need to ensure the initial dual agency disclosure obtaining informed consent is made to each of his respective clients? At first contact When the offer from one of his clients to the other is executed When the purchase agreement between two of his clients is executed With their respective brokerage agreements

With their respective brokerage agreements The initial dual agency disclosure must be presented by the licensee at the time the brokerage agreement is entered into, and may be signed by the client at that time or at any time before the licensee acts as a dual agent as to the client.

When must licensees in Illinois notify the Division of Real Estate of a name change? Within 15 days Within 24 hours Within 30 days Within seven days

Within 24 hours Licensees in Illinois must immediately (within 24 hours) notify the division of change to name, office location, or address.

Marvin knows that three-bedroom properties with two bathrooms sell quickest in his market. In an ad for a new listing, he wrote, "Bonus room could easily be a third bedroom", even though he knows from experience that this isn't true because the room is too small, has no egress and no heat source, and can only be accessed by walking through a bathroom. Is Marvin guilty of misrepresentation? No, because any buyers interested in the bonus room as a third bedroom should be able to see for themselves that it won't work. No, because the term "easily" is subjective. Yes, because he billed the property as a three-bedroom when it only has two. Yes, because he knew there would be major issues converting that room to a bedroom.

Yes, because he knew there would be major issues converting that room to a bedroom. Though Marvin didn't market the property as a three-bedroom home, his experience should tell him that converting the bonus room to a third bedroom would not be easy, as he noted in his ad.

A listing agreement between a principal and broker is a(n) implied contract. breach of contract. express contract. discharge of contract.

express contract A listing agreement is an express contract between the principal and broker that names the broker as fiduciary representative (agent) of the principal.

If Billy owns his home free and clear of encumbrances and has the right to devise it to his daughter, he owns a(n) leasehold fee simple estate warranty estate

fee simple estate A fee simple estate passes to the owner's heirs upon his/her death.

When a broker is retained by the buyer, the broker owes the prospective seller obedience to lawful instructions. confidentiality about the seller's financial situation. honest, straightforward treatment. undivided loyalty.

honest, straightforward treatment. When retained by the buyer, the broker owes a prospective seller honest, straightforward treatment.

Malcolm just received his salesperson's license and has joined a firm. He will MOST likely be hired for tax purposes as a(n) associate broker. salaried employee. independent contractor. realtor

independent contractor A survey by the National Association of REALTORS® found that nine out of ten real estate firms treated their sales associates as independent contractors, which allows them to avoid the bookkeeping of withholding taxes, Social Security payments, unemployment insurance, etc.

Gail and Bobby have applied for a Federal Housing Administration (FHA) loan. The mortgage will be backed by the full faith and credit of the U.S. Government. insured by FHA through the Department of Housing and Urban Development (HUD). guaranteed by the federal government at no cost to the borrower paid for by private mortgage insurance (PMI) premiums.

insured by FHA through the Department of Housing and Urban Development (HUD). FHA, which operates under the Department of Housing and Urban Development (HUD), does not lend money. Rather, it insures mortgage loans made by approved lenders against loss.

All of the following events would terminate a listing agreement EXCEPT the death of the seller the broker's bankruptcy a kitchen fire on the property restricted access to the property

kitchen fire on the property A listing agreement may terminate upon the death or bankruptcy of either party, and completion or fulfillment of the purpose for which the agency was created. A kitchen fire would not terminate the listing unless the property was destroyed.

The 6 categories of real property are residential, commercial, industrial, agricultural, special purpose, and mixed use government property farmland multifamily use

mixed use Explanation: The 6 categories of real property are residential, commercial, industrial, agricultural, special purpose, and mixed use.

The Federal Housing Administration's (FHA) Section 8 program helps low- and moderate-income people by paying their mortgage loans. insuring their mortgage loans. paying the maintenance on a purchased home. paying part of their rent.

paying part of their rent FHA's Section 8 program helps low- and moderate-income people by paying part of their rent

Marla purchased a cottage bordering a stream. The rights she has in relation to the stream are reversionary littoral laches riparian.

riparian. Riparian rights are the owner's rights in land bordering a river or stream.

To qualify for innocent landowner immunity, the owner must not have had either actual or constructive knowledge of damage on the property and, at the time of purchasing the property, must have requested an environmental survey from the mortgage lender. obtained a Phase I assessment of the property. shown due care to determine that the property was not damaged. owned the property for one year or less.

shown due care to determine that the property was not damaged. In order for a property owner to qualify for innocent landowner immunity, the owner must have shown care to determine that the property was not damaged at time of purchase.

Jesse signs a deed to Maryam as grantee, has it acknowledged, and receives payment from her. Jesse arranges to meet Maryam the next afternoon to give the deed to her. Which of the following best describes when Maryam will own the property? immediately because she has paid for it. the next afternoon when she receives the deed. when she records the deed. as soon as she signs the deed.

the next afternoon when she receives the deed. Title is said to pass when a deed is delivered and accepted

Commissions are usually earned when the buyer makes a purchase offer the seller accepts the buyer's offer without conditions. the lender commits to funding the loan. the title to the property is searched.

the seller accepts the buyer's offer without conditions. Commissions are usually earned when the seller accepts an offer from a ready, willing, and able buyer.

buyer, before any binding contract of sale is signed, is entitled to receive a property condition disclosure statement from the seller, and the licensee must inform the seller of the seller's legal rights and obligations regarding filling out the form or ignoring it. was incorrect. whether or not the seller provides the disclosure form has no effect on the seller's liability for undisclosed defects.

whether or not the seller provides the disclosure form has no effect on the seller's liability for undisclosed defects. Whether the seller provides the disclosure form has no effect on the seller's liability for undisclosed defects. In some states, buyers of one- to four family dwellings are entitled to receive a Property Condition Disclosure Statement from the seller before any binding contract of sale is signed.